We have analyzed recent Company estimates of sustaining capital. Relative to our approximations of sustaining capital, post Horizon expansion, at current prices CNQ offers a far better free cash flow yield than the Canadian Integrateds, even in a high case refining margin scenario (see charts on page 2). We are upgrading our ranking on CNQ to Top Pick from Outperform, increasing our target price by $3.00 to $47.00/share, while we have reduced our target prices for both HSE and CVE by $1.00/share ....
07 Jul 2016
Sustaining Capital and Implied Free Cash Flow
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Sustaining Capital and Implied Free Cash Flow
Canadian Natural Resources Limited (CNQ:TSE), 0 | Cenovus Energy Inc. (CVE:TSE), 0 | Imperial Oil Limited (IMO:TSE), 0 | MEG Energy Corp. (MEG:TSE), 0 | Suncor Energy Inc. (SU:TSE), 0
- Published:
07 Jul 2016 -
Author:
Michael P. Dunn -
Pages:
15
We have analyzed recent Company estimates of sustaining capital. Relative to our approximations of sustaining capital, post Horizon expansion, at current prices CNQ offers a far better free cash flow yield than the Canadian Integrateds, even in a high case refining margin scenario (see charts on page 2). We are upgrading our ranking on CNQ to Top Pick from Outperform, increasing our target price by $3.00 to $47.00/share, while we have reduced our target prices for both HSE and CVE by $1.00/share ....